The Spanish economy raced ahead of the rest of the euro zone in the second quarter, growing at an even stronger pace than initially thought.
The National Statistics Institute (INE) reported on Friday that gross domestic product (GDP) expanded by 0.8% between April and June compared with the previous three months. That marks an improvement on the 0.7% advance estimate released in July. ALSO READ: Despite US tariff uncertainty, Spanish economy increased pace in 2nd quarter.
On a yearly basis, output climbed 3.1% in the quarter, also higher than the earlier 2.8% estimate, INE figures showed.
Growth was broad-based across the economy, according to the institute. Manufacturing, construction and especially services all performed strongly, with the services sector – responsible for more than half of Spain’s GDP – lifted by another bumper tourism season. ALSO READ: Spain posts July tourism record, but growth loses momentum.
The expansion coincided with a further drop in unemployment. The jobless rate slipped to 10.29% in the second quarter, its lowest point since early 2008. ALSO READ: Spain’s unemployment level falls to 2.4m – the lowest July figure in 18 years.
Spain’s momentum sharply contrasts with the rest of the euro zone, where overall GDP barely grew – just 0.1% in the same period. Germany’s economy shrank 0.3%, Italy slipped 0.1%, while France posted a modest 0.3% increase.
The results support the government’s decision to raise its 2025 growth outlook. ‘The strong performance backs the Spanish government’s recent upgrade of its 2025 GDP forecast to 2.7%,’ Economy Minister Carlos Cuerpo said in an emailed statement.
While Madrid expects solid expansion through the year, many of its European neighbours face stagnation.
INE also revised Spain’s year-on-year growth in the first quarter of 2025 to 3.2%, up from 2.8%, while confirming quarter-on-quarter growth at 0.6%.
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Contabilidad Nacional Trimestral de España. Segundo trimestre 2025 @es_INE
— INE España (@es_INE) September 26, 2025
El #PIB registró una variación del 0,8% en el segundo trimestre respecto al trimestre anterior en términos de volumen. Esta tasa fue dos décimas superior a la del primer trimestre de 2025
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